Lease Purchase Benefits for Sellers/Landlords

If you don't need much cash up front ($5,000 - $20,000), the best way to get your full asking price and a higher than average monthly rent for your home is to offer it for sale on a Lease Purchase Agreement. Since you're offering a huge value and attractive financing to assist the tenant/buyer, they tend to be willing to pay a higher sales price and higher than average rent. Tenant/buyers can easily understand the concept of trading price for time and value.

When you Lease Purchase your home, you receive a non-refundable deposit. This amount can be as much (or as little) as you negotiate. You will receive a majority of your profits at closing when, and if, the tenant/buyer purchases your property. You also win if the tenant/buyer defaults since the deposit is non-refundable. You can begin the whole process over again by collecting another lease purchase deposit from a different tenant/buyer.

The earnings potential for the landlord/seller is tremendous since a well-negotiated deal will reap profits at every stage of the game.

Here are some features and benefits for the landlord/seller:

  • Top sales price, even if demand is low: You attract more buyers who are willing to pay a premium because of the exclusive financing terms and value you're offering.
  • Higher than usual rent: Since you are flexible on your financing terms and are offering a tremendous value, you can demand a higher than usual rent.
  • Positive cash flow: Since you can demand a higher than usual rent, your positive cash flow will increase.
  • Non-refundable option money: When a tenant/buyer executes (signs) a Lease Purchase contract, you receive an non-refundable deposit that is yours to keep should they default or decide not to buy.
  • Highest quality tenants, minimum risk: Because you are renting to tenants who have a vested interest in your home, they think like homeowners and tend to take good care of it.
  • Less maintenance, less landlording headaches: Tenants who have a vested interest and believe they are a homeowner may feel a "pride of ownership" that encourages them to pay on time, perform routine maintenance and make improvements to your home.
  • Tax shelter is held intact: Because you remain on the deed until the lease purchase is exercised, you maintain all of the tax benefits of ownership.
  • Largest market of buyers: You are marketing your home not only to traditional buyers, but also to renters and investors. These three groups make up over 95% of people whom buy real estate.
  • No vacancies: When you advertise your home as a Lease Purchase our phone will literally ring off the hook. Typical turnover time is days or weeks instead of months or even years.
  • Peace of mind: It is safer than conventional rentals because of the quality of the tenants and their vested interest in your home. It also means that someone is living on-site who will watch and guard your home against fire, theft, vandalism, etc.